Zeta Global and Commerce shares fell 6.1% and 6%, respectively, in an afternoon session after underwhelming earnings from Amazon and Intel, which followed mediocre reports from Alphabet and ServiceNow, fueled worries about heavy AI spending and cash burn. CNBC reported the selloff spread across technology and hardware stocks, with investors questioning when AI infrastructure investments will produce meaningful revenue and profit growth. The article notes Zeta Global is highly volatile, with 50 moves greater than 5% over the past year, so the market appears to see this news as meaningful but not a fundamental change. Separately, CNBC reported investors were rotating from semiconductors into high-growth software, citing a ballooning U.S. fiscal deficit, higher inflation and slower AI infrastructure spending next year.
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